Ivernia Inc IVWFF

RE: may drop further.......goldeggs

[ElJ]

In the light of the detail proposed plan for getting Ivernia's lead inventory in Esperance out of the port and on to original customer, observations on your recent Ivernia post are not particularly important, but I offer a few comments in a spirit of clarification: 1. Goldeggs wrote: "I think the main reason this(IVW market price) has not dropped more is the main players are prevented from trading for 40 days"......ref. April 3, 2007 NR I suggest that you review carefully the financial arrangements that were actually put in place(ref. April 12, 2007) which in fact contained differences from your quoted reference...example: (a) Interest rate on the $16.5U.S. million Sentient Note(which was to be extended from April 29,2007 for 12 months at 11.25%) is now, under the latest arrangement to be paid-off with part of the new "Senior facility" which has interest at 9.25%. 2. Conversion price is now fixed at $1.20 compared to previous proposed arrangement....... to "allow the holder to convert outstanding principal amounts into common shares of the Company at a conversion price equal to the Company's volume weighted average price for a 40-trading day period from April 3, 2007. Participants in this transaction are precluded from trading shares of Ivernia during the 40-trading day period. I suggest that goldeggs' assignment of current "market support" to the "40 day trading period" constraint is the original proposal no longer applies in that narrow context. 3. The "Senior Facility" originally was for $22US million max. and is now for ($50-$16.5)US million. I also recommend that you take another look at Ivernia's costs in the context of your $15 million per month estimate..... note that in Q4,2006 Ivernia had a little over $30 million in revenues and a pos. cash flow of $16.9 million. I hope some of this is useful, Peace, Good Decision-making to All, ElJ